New Jersey-2012-ACR47-Introduced

A Concurrent Resolution proposing to amend Article VIII, Section II of the Constitution of the State of New Jersey.

Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):

1. The following proposed amendments to the Constitution of the State of New Jersey are agreed to:

PROPOSED AMENDMENTS

Amend Article VIII, Section II, paragraph 2 to read as follows:

2. No money shall be drawn from the State treasury but for appropriations made by law. All moneys for the support of the State government and for all other State purposes as far as can be ascertained or reasonably foreseen, shall be provided for in one general appropriation law covering one and the same fiscal year; except that when a change in the fiscal year is made, necessary provision may be made to effect the transition. No general appropriation law or other law appropriating money for any State purpose shall be enacted if the appropriation contained therein, together with all prior appropriations made for the same fiscal period, shall exceed the total amount of revenue [on hand and] anticipated to be collected from recurring revenue during regular collection cycles falling within the same fiscal period. This total amount of revenue shall not include anticipated revenue from a brief and limited collection opportunity, from a special, short-term duration revenue enhancement, or from a non-routine financing or collection effort. The total amount of revenue anticipated to be collected within the same fiscal year which will be available to meet such appropriations during such fiscal period, shall be an amount from such recurring revenue during regular collection cycles as shall be certified by the Governor.

(cf: Art.VIII, Section II, par.2, January 1, 1948)

2. When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Attorney General, not less than three months prior to the general election.

3. This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

There shall be printed on each official ballot to be used at the general election, the following:

a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question as follows:

If you favor the proposition printed below make a cross (X), plus (+), or check (a) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (a) in the square opposite the word "No."

b. In every municipality the following question:

		REQUIRES REGULARLY RECURRING REVENUE TO BALANCE STATE BUDGET
	YES	Do you approve the proposed amendment to the State Constitution which provides that only revenue anticipated to be collected from recurring revenue during regular collection cycles certified by the Governor to fall within the State fiscal period shall be used to balance against all appropriations made for the same fiscal period, and that this total amount of revenue shall not include anticipated revenue from a brief and limited collection opportunity, from a special, short-term revenue enhancement, or from a non-routine financing or collection effort?
		INTERPRETIVE STATEMENT
	NO	This constitutional amendment requires that the State budget be balanced only with regularly collected recurring revenue. The State budget may not use revenue from a brief and limited collection opportunity, from a special, short-term revenue enhancement, or from a non-routine financing or collection effort. Recent State budgets have taken advantage of one-time or limited revenue sources such as long-term borrowing by a State authority to cover spending during one or two budget years, tax amnesty, and transfers from special trust funds. This amendment will require annual State government spending to be offset without using temporary revenues.

SCHEDULE

This constitutional amendment shall apply to the fiscal year beginning on July 1 next following its approval by the people pursuant to Article IX, paragraph 1 of the Constitution, and each fiscal year thereafter.

STATEMENT

This concurrent resolution proposes a constitutional amendment to require that the State budget be balanced only with regularly collected recurring revenue. Under this amendment the State budget may not use revenue from a brief and limited collection opportunity, from a special, short-term revenue enhancement, or from a non-routine financing or collection effort. Recent State budgets have taken advantage of one-time or limited revenue sources such as long-term independent authority borrowing to cover spending during one or two budget years, tax amnesty, and transfers from special trust funds. This amendment will require annual State government spending to be offset without using temporary revenues. State fiscal policy makers seem unable to be able to avoid using unsustainable one-time revenue measures which are not sound long-term strategies for sustaining balanced annual State budgets. Using only regularly recurring revenues that are collected under the State's regular, settled tax base will force policy makers to better prioritize budget needs during times of fiscal constraints and put a check on run-away spending during times of rapid growth in tax collections.